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Sky King, Inc. 2013-2-7

About this Order

This consent order concerns violations of certain consumer protection provisions of the Department of Transportation’s Public Charter regulations by Sky King, Inc., (Sky King) a direct air carrier for a number of Public Charter programs filed by Southern Sky Air & Tours, d/b/a Myrtle Beach Direct Air & Tours (Direct Air). In violation of 14 CFR Parts 212 and 380, Sky King operated numerous Public Charter flights on behalf of Direct Air without first receiving the full charter price for those flights, thereby operating on the basis of prospective payments or credits and it failed to make reasonable efforts to ascertain before undertaking Public Charter flights that the charter operator was in compliance with 14 CFR Part 380. In addition, subsequent to the cessation of Direct Air’s operations and in violation of 14 CFR Parts 212 and 380, Sky King cancelled charter flights less than ten days before the scheduled departure date and failed to return to their points of origin all passengers who purchased round-trip transportation on Sky King-operated Public Charter flights and whom Sky King had already transported on their outbound flights. These activities constituted unfair and deceptive practices and unfair methods of competition in violation of 49 U.S.C. § 41712. This order directs Sky King to cease and desist from future violations of section 41712 and the aforementioned Federal regulations and assesses the carrier a compromise civil penalty of $500,000.